Each day you will find there is no shortage of opportunities for you to invest your capital in to so you may ask yourself why should I invest in stocks? Well to put it in a simple answer investing in stocks can be the best opportunity available as they yield the highest results and returns.
Since its creation the stock market has on a daily basis given by far the best results when you compare them to other investment entities such as property. When we look at the main purpose for people investing in trading their hard earned money the main reason we see is that investors are looking to grow their money the fastest way possible and the logical way to do this is investing within the stock market.
Over a period a new investor will learn certain skills that will lead them to informed decisions on where they are actually going to invest their money safely and successfully. There are many online trading resources to review, we recommend reviewing them on a daily basis at a minimum, resources such as Yahoo Currency Resources and The Nasdaq stock resources.
There are of course many Trading Tips for investing your money apart from stocks such as bonds, cash and mutual funds but these generally do not give the same returns as stocks will when purchased correctly. If we compare stocks and bonds we will find that they are in many ways they are very much alike but stocks have always provided a faster rate of return than bonds.
The return you will see from investing in stocks is around the twelve percent mark against a rough rate of six percent for many types of bonds so you can see that the return from stocks produces almost twice the profit yield over bonds. There are also benefits when trading in areas such as London, especially with the networking opportunities available. Companies such as Prestige Offices, provide a choice of offices to rent in London and the surrounding area. If you prefer somewhere further afield we recommend you contact an estate agency in North Wales, which would offer much cheaper rents.
The only advantage I have found bonds have compared to stocks is that stocks may decline at a large rate in some circumstances where as investing in bonds rarely cause drops in value. The best way to look at this is to see that when you invest in bonds you are in fact lending money to the company you are investing in and even though you may receive less of a return you will always be guaranteed your money back at the end of the bonds life where as with stocks you are playing a bit of a gambling game dependent on how well the company does overall. If we compare stocks to investing cash then we will see that cash is a very liquid investment and a general money account will enable the investor to pull their money out at any time but of course with this less risk comes less profitable returns. Google also offer very professional and concise finance news that ensures traders can stay ahead of the news relating to the changes in Companies stock prices.
Mutual funds have become very popular over the years but with this they have come under heavy scrutiny by many market experts as when compared to stocks they are still lacking in the rewards received from the investment. Mutual funds are made up of various combinations of investments or if so wished just a single investment but the majority of mutual funds are invested in stocks. With this in mind you may think that investing in mutual funds would be exactly the same as investing in stocks alone and in many ways this is true but there are of course many differences.
The main reason that mutual funds are different to stocks is that the investor loses a large amount of control as when they buy in to these funds they are in fact buying a small piece of a large pie. You lose the control to sell any stocks within the fund if they are under performing which could in some cases make you investment price drop.
With all these reasons in mind it is plain to see that stocks are the way forward when dealing with investment for the simple reason that they provide the investor with much more controls as well as returning at a much higher rate than any other type of investment. Learn more in these comprehensive guide to high dividend stocks.